It is interesting to read that the Australian Securities and Investments Commission (ASIC) has taken action against the directors of the trustee of The Prime Retirement and Aged Care Property Trust. The core of the ASIC case is that the directors failed to act in the best interest of members of the trust when they paid an excessive fee to entities associated with directors.
In a press release ASIC said "Central to ASIC's action is the duty of officers of responsible entities to act in the best interest of the members of the scheme and to refrain from making improper use of their position as an officer to cause detriment to the members of the scheme."
If ASIC mean what they say then the four trustees of the Bookmakers Superannuation Fund in 2004 are in big trouble. John Kemmedy, former Chairman of City Tatts, and the other three trustees set up an arrangement where the Fund paid annual fees to their own company, Super Promoters. And this arrangement was obviously detrimental to the members of the Fund since it provided no benefit for the fees paid.
It can only be a matter of time before ASIC takes action against the four.
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